BILL ANALYSIS �
SB 611
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Date of Hearing: June 23, 2014
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
SB 611 (Hill) - As Amended: June 4, 2014
SENATE VOTE : Vote not relevant
SUBJECT : Modified limousines: inspection program: safety
requirements
SUMMARY : Requires all modified limousines, as defined, to be
equipped with two fire extinguishers and requires the California
Highway Patrol (CHP) to develop and implement an inspection
program for modified limousines, as specified. Specifically,
this bill :
1)Requires all modified limousines to be equipped with two fire
extinguishers, as specified.
2)Requires a driver or operator of a modified limousine to
notify passengers of the location of each fire extinguisher in
the vehicle.
3)Requires CHP to implement the limousine inspection program no
later than January 1, 2016, and requires CHP to adopt
emergency regulations for purposes of developing and
implementing the inspection program.
4)Requires passenger stage corporations and charter-party
carrier of passengers to provide a list to the California
Public Utilities Commission (PUC) specifically identifying
each modified limousine, as defined, operated by a passenger
stage corporations and charter-party carriers and the terminal
location of each modified limousine.
5)Prohibits PUC from issuing to a passenger stage corporation or
charter-party carriers any permit, certificate, or authority
to provide transportation services if all required inspection
fees are not submitted to PUC, as specified.
6)Requires PUC to no later than January 1, 2015, to provide CHP
with a list of all modified limousines and their terminal
locations in order for CHP to promulgate regulations for a
limousine inspection program.
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7)Repeals existing provisions requiring charter-party carriers
to obtain special "livery" license plates issued by the
Department of Motor Vehicles (DMV) and to permanently affix
livery plates on all limousines the charter-party carriers
operates.
8)Defines "modified limousine" as any vehicle that has been
modified, altered, or extended in a manner that increases the
overall wheelbase of the vehicle in any amount sufficient to
accommodate additional passengers with a seating capacity of
not more than 10 passengers including the driver and is used
in the transportation of passengers for hire.
9)Requires CHP to establish a limousine inspection program and
requires modified limousines operated by a passenger stage
corporations or charter-party carriers to be inspected by CHP
once every 13 months.
10)Specifies that the limousine inspection program must include
an inspection of, but not be limited to, the installation of
safety equipment, retention of maintenance logs, accident
reports, and driver records.
11)Requires CHP to establish an inspection fee through the
promulgation of regulations that will be applied to modified
limousines subject to inspection. Specified the inspection
fee will be collected every 13 months, based on the number of
modified limousines operated by a passenger stage corporation
or charter-party carrier, and set at the amount necessary to
cover CHP's cost to administer the limousine inspection
program.
12)Requires the inspection fee to be collected by PUC.
13) Requires CHP to transmit inspection data to PUC.
14) Makes additional conforming and technical changes.
EXISTING LAW :
1)Establishes the "Passenger Charter-Party Carriers Act," which
directs the PUC to issue permits or certificates to
charter-party carriers of passengers, investigate complaints
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against carriers, and cancel, revoke, or suspend permits and
certificates for specific violations.
2)Defines "charter-party carrier of passengers" as every person
engaged in the transportation of persons by motor vehicle for
compensation, whether in common or contract carriage, over any
public highway in the state.
3)Defines "passenger stage corporation" as a corporation or
person engaged as a common carrier, for compensation, in the
ownership, control, operation, or management of any passenger
stage over any public highway in the state between a fixed
termini or over a regular route, as specified.
4)Defines "limousine" as any sedan or sport utility vehicle,
either standard or extended length, with a seating capacity of
not more than 10 passengers including the driver, that is used
for transportation of passengers for hire on a prearranged
basis.
5)Defines a "bus" as a vehicle designed, used, or maintained for
carrying more than 10 persons, including the driver, which is
used to transport persons for compensation or profit, or is
used by any nonprofit organization or group.
6)Prohibits a dealer from selling or from offering for sale a
vehicle that does not conform to federal vehicle safety
standards. Additionally, prohibits a person from selling or
offering for sale for use upon a vehicle an item of equipment
that does not conform to federal vehicle safety standards.
7)At the federal level, prohibits states from imposing vehicle
equipment standards that are inconsistent with or conflict
with any related federal standard.
8)Requires CHP to inspect and regulate the safe operation to of
various types of vehicles, such as buses, as specified.
9)Requires passenger stage corporations to provide an annual
list to PUC that identifies all vehicles used in
transportation for compensation during the preceding year and
requires PUC to provide the list to CHP.
10)Requires a limousine operated by a charter-party carrier to
display a specialty license plate issued by DMV that includes
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the word "Livery."
FISCAL EFFECT : Unknown.
COMMENTS : Within the past year, two incidents in Northern
California involving modified limousines carrying less than ten
passengers caught on fire while traveling which left several
unharmed and claimed the lives of five passengers.
Unfortunately, these modified limousines were not equipped with
a fire extinguisher nor underwent a CHP safety inspection.
In response to these incidents, the author introduced SB 338
last year which would have required modified limousines to be
equipped with two fire extinguishers and directed CHP to develop
and implement a limousine inspection program. The Governor
ultimately vetoed SB 338 and requested the Legislature to send
him similar legislation with a provision authorizing CHP to
charge a fee for the actual cost to perform the inspections.
This bill attempts to address the Governor's concerns by
authorizing CHP to collect inspection fees sufficient to offset
the cost to administer the inspection program. The author opines
this bill will improve the safety standards for modified
limousines by bringing them in line with the safety standards
for larger charter-party vehicles.
1)Background : Current law provides that charter-party carriers
and passenger stage corporations with a seating capacity of
more than 10 passengers, including large limousines and party
buses are regulated by the PUC and CHP. Charter-party
carriers provide transportation services that are prearranged
by a "chartering party" are designed to allow the chartering
party to have control over the transportation. These types of
carriers may not charge individual fares because fees are
based on vehicle mileage, time of use, or some combination
thereof. Charter-party carriers, under the jurisdiction of
the CHP, are required to be equipped with a fire extinguisher
and are also required to undergo an annual safety inspection.
Passenger stage corporations generally provide scheduled
services over fixed routes and charge individual fees. For
instance, passenger stage corporations may provide on call
"door to door" shuttle services such as airport shuttle
service.
Charter party carriers and passenger stage corporations that
operate limousines with a seating capacity for more than 10
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passengers are subject to commercial vehicle regulatory
requirements and must comply with the same driver safety and
vehicle maintenance requirements as charter buses or shuttles,
including CHP vehicle inspections, driver certifications, and
hours of service requirements.
The PUC solely regulates charter-party carriers with a seating
capacity of less than 10 passengers, such as smaller six and
eight passenger modified limousines. These vehicles are
classified as passenger vehicles and are not subject to the
same requirements as those carriers with seating capacity for
more than 10 passengers. Furthermore, the smaller
Charter-party carriers are not required to be equipped with a
fire extinguisher and are not required to undergo a regular
safety inspection.
These limousine operators must submit an application to the
PUC to obtain a permit or certificate, pay a fee, and provide
sufficient evidence of financial responsibility. Once
operators are permitted by the PUC, vehicle inspections are
not required to be conducted by PUC or CHP on a regular basis.
A carrier permit or certification is valid for three years
from the time of issuance and requires a carrier to submit a
renewal application and provide the proper documentation
accordingly. Operators may be subject to a PUC investigation
under specific circumstances including, a complaint by a
customer, a complaint by an industry or law enforcement
entity, or a notice of lapsed or cancelled insurance policies;
however a safety inspection of limousines is not required.
2)State's Auditor critique of PUC's Transportation Enforcement
Branch : A June 17, 2014 State Auditor Report of the PUC
revealed that it fails to adequately ensure consumers'
transportation safety and does not appropriately collect and
spend fees from passenger carriers. The audit highlights
revealed the following<1>:
The commission's oversight of passenger carriers is
insufficient to ensure consumer safety.
o It does not have formal policies and
procedures to address complaints against passenger
carriers.
o It does not ensure complaints are resolved
----------------------
<1> California State Auditor, California Public Utilities
Commission, Report 2013-130 (June 14, 2014)
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timely or adequately.
o When it issues citations to passenger
carriers, the citations have been for amounts much
lower than what state law allows.
It does not perform periodic reviews of passenger
carrier fee payments to ensure the State received the
proper amount of fee revenue.
The commission does not track-by class of
carrier-how it spends fees received from each class of
common carrier.
The commission is not using some of its staff for
airport enforcement although it received funding for this
purpose.
The commission lacks effective program leadership.
o It has not established program goals,
strategies, or performance measures to guide its
efforts.
o It has high turnover and vacancies in key
management positions.
1)Enhancing safety standards for large limousines : This bill
appropriately seeks to enhance safety standards and procedures
for modified limousines with a seating capacity for more than
10 passengers by requiring these vehicles to be equipped with
two fire extinguishers and CHP to develop and implement an
inspection program no later than January 1, 2016. CHP would
also be required to adopt emergency regulations for the
purpose of developing and implementing the inspection program.
All vehicles would be subject to an annual safety inspection
by the CHP. An inspection fee, established by CHP, would be
applied to modified limousines subject to inspection and would
be collected by the PUC.
The safety standards proposed in this bill will bring safety
in line with the standards for larger charter-party carriers.
Finally, by requiring charter-party carriers and passenger
stage corporations to submit a list of all operating modified
limousines and terminal locations will provide CHP with data
to develop an effective inspection program that will capture
all modified limousines operating within the state.
REGISTERED SUPPORT / OPPOSITION :
Support
SB 611
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Alliance of Automobile Manufacturers (Alliance)
Opposition
None on file.
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083